How much can I borrow for
The banks will determine how much money you can borrow for your mortgage based on your income but the Central Bank mandates that banks cap how much they lend (exceptions notwithstanding) at 4 times your income. This is a rule of thumb as other factors such as age, other loans, children are factored in.
It’s important to note that each bank may have slightly different standards, policies and ways of measuring income. But in general they judge your:
Basic income
- PAYE look at your income coming from commissions, shift, etc., although they may not give the same allowance as basic income
- Income for self-employed borrowers is treated differently as well by different banks, most likely calculated based on net profit, not having frequent turnover, and a certain number of years on the job.
Exceptions
While these are the bank standards for mortgages, Exceptions may be possible, granting extra funds or special conditions based on circumstances. It’s important to note that Exceptions are not guaranteed or even predictable, and can vary greatly based on a host of factors, including:
- Your age
- Your income
- If you have kids (and if so, how many/what ages, etc.)
- And even the time of year can come into play as the bank’s consider mortgage Exceptions.
If the bank does grant an exception, they may lend up 4 1⁄2 times your regular income, possibly more but very rare.
For more personalised advice on ‘How much can I borrow for a mortgage in Ireland?’ contact JC Mortgages